UNIVERSITY OF CENTRAL PUNJAB

FALL 2020

SPRING 2024
Course Title: Audit Reporting
Course Code: AF4273

Assignment No.3
Course Instructor: Muhammad Usman Islam

Section: B Program: BSAF Date: 25-5-2024

Submission Date:28-05-2024 (in class) Maximum Marks: 10

Program Objective: Course Objective: Course Learning Objective:

1,2,3 1,2 1,2,3

TO BE FILLED IN BY THE STUDENT

Student Name: HafizaEman
Registration No: L1F20BSAF0121 Sr. No:
Irfan

Instructions-a-:
Use the following link it’s a 6 minutes video about how to read the annual report.

https://www.youtube.com/watch?v=pwF84tPRQu4
Assignment Question:
Choose a publicly listed company that interests you and access its latest annual report. Analyze
the audit report section of the annual report based on the key components outlined in the
provided study material.
Assignment Tasks: a. Identify the introduction, opinion section, basis for opinion, management
responsibilities, auditor’s responsibilities, key audit matters, corporate governance disclosure,
and internal control evaluation, if available, in the company's audit report.

Page 1 of 18 Assignment
 Task after assignment 1
Once you identified all the thecompenent you need to do the following
Paste two parts in your assignment
Opinion section
Key Audit Matters Section
You just need to copy both part and justfy the opinion mentioned by the auditor with the given
key audit matters.

Task after assignment 2

Following task is your real task of assignment 3 but your
assignment must has previous task as well otherwise
assignment 3 will be useless

Elaborate Information 1. Other than the Unconsolidated and Consolidated Financial Statements
and Auditor’s Reports. “this is mention in all report it might be for condolidated or
unconsolidated financial statements”. “this part elaborate management responsibilities you need
to identify those and copy in your assignment”. Similarly you need to add all the following
information
2. Responsibilities of Management and Board of Directors
3. Auditor’s Responsibilities for the Audit
4. Report on Other Legal and Regulatory Requirements

Note:
I have mentioned the 4 points for assignment 3 all these points
are avaibale in financial reports you need to copy paste these parts
in your assignment and in the end write a paragraph that
differenciate between all these 4 points and also explain the purpose
of these points in financial statement.
Instructions--: Mention the link from you will download the annual report with your answer.
The report should be of maximum one page with following condition
Font size : 12
Font Style: Time new roman
It must be printed, your name ID should be printed nothing should be hand written
Hand written is not acceptable

Page 2 of 18 Assignment
 Assignment no 1 Task
Introduction: The report begins with the heading “INDEPENDENT AUDITOR’S REPORT” addressed “To
the members of Nishat Mills Limited.”

Opinion Section: The auditor provides an opinion stating that, in their opinion, the financial statements
give a true and fair view of the company’s affairs as at 30 June 2023, and of the profit, other
comprehensive loss, the changes in equity, and its cash flows for the year then ended.

Basis for Opinion: The auditor outlines the basis for their opinion, stating that the audit was conducted
in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan, and that they
believe the audit evidence obtained is sufficient and appropriate to provide a basis for their opinion.

Management Responsibilities: It is mentioned that management is responsible for the preparation and
fair presentation of the financial statements, as well as for such internal control as management
determines necessary to enable the preparation of financial statements that are free from material
misstatement.

Auditor’s Responsibilities: The auditor outlines their responsibilities, which include obtaining
reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error.

Key Audit Matters: The auditor identifies and discusses key audit matters, including Inventory existence
and valuation, Investments in securities (both quoted and unquoted), Capital expenditures, and
Revenue recognition. For each matter, they describe how it was addressed in the audit.

Corporate Governance Disclosure: There is no explicit section labeled “Corporate Governance

Disclosure” in the provided excerpt.

Other Reporting Requirements: The report also addresses other legal and regulatory requirements,
confirming compliance with the Companies Act, 2017, and proper handling of investments,
expenditures, and zakat deductions.

Internal Control Evaluation: Similarly, there is no mention of internal control evaluation in the audit
report.

Overall, the audit report covers most of the required components outlined in the assignment
tasks, but it lacks specific sections on corporate governance disclosure and internal control
evaluation.

Page 3 of 18 Assignment
 Assignment no 2 Task

INDEPENDENT AUDITOR’S REPORT

To the members of Nishat Mills Limited

Report on the Audit of the Financial Statements
Opinion:

We have audited the annexed financial statements of Nishat Mills Limited (the Company), which
comprise the statement of financial position as at 30 June 2023, and the statement of profit or
loss, the statement of comprehensive income, the statement of changes in equity, the statement of
cash flows for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies and other explanatory information, and we state that we have
obtained all the information and explanations which, to the best of our knowledge and belief,
were necessary for the purposes of the audit.

In our opinion and to the best of our information and according to the explanations given to us,
the statement of financial position, the statement of profit or loss, the statement of
comprehensive income, the statement of changes in equity and the statement of cash flows
together with the notes forming part thereof conform with the accounting and reporting standards
as applicable in Pakistan and give the information required by the Companies Act, 2017 (XIX of
2017), in the manner so required and respectively give a true and fair view of the state of the
Company's affairs as at 30 June 2023 and of the profit, other comprehensive loss, the changes in
equity and its cash flows for the year then ended.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
Following are the key audit matters:

Page 4 of 18 Assignment
 Sr.
Key audit matters How the matters were addressed in our
No
audit
.
1. Inventory existence and valuation

Inventory as at 30 June 2023 amounted to Rupees Our procedures over existence and valuation of
40,757.572 million, break up of which is as follows: inventory included, but were not limited to:

- Stores, spare parts and loose tools Rupees • To test the quantity of inventories at allocations,
5,955.945 million we assessed the corresponding inventory
observation instructions and participated in
- Stock-in-trade Rupees 34,801.627 million inventory counts on sites. Based on samples, we
performed test counts and compared the
Inventory is measured at the lower of cost and net quantities counted by us with the results of the
realizable value. counts of the management.

We identified existence and valuation of • For a sample of inventory items, re-performed

inventory as a key audit matter due to its size, the weighted average cost calculation and
representing 23.93% of the total assets of the compared the weighted average cost appearing
Company as at 30 June 2023, and the on valuation sheets.
judgment involved in valuation.
• We tested that the ageing report used by
For further information on inventory, refer to the management correctly aged inventory items by
following: agreeing a sample of aged inventory items to
the last recorded invoice.
- Summary of significant accounting
policies, Inventories note 2.17 to the • On a sample basis, we tested the net realizable
financial statements. value of inventory items to recent selling prices
and re-performed the calculation of the
- Stores, spares parts and loose tools note inventory write down, if any.
19 and Stock-in-trade note 20 to the
financial statements. • We assessed the percentage write down applied
to older inventory with reference to historic
inventory write downs and recoveries on slow
moving inventory.

• In the context of our testing of the calculation,

we analyzed individual cost components and
traced them back to the corresponding
underlying documents. We furthermore
challenged changes in unit costs.

• We also made enquires of management,

including those outside of the finance function,
and considered the results of our testing above
to determine whether any specific write downs
were required.

2. Investments in securities
Quoted investments: • We verified the accuracy of management’s
judgment used in classification of quoted
The Company’s portfolio of quoted investments, investments in related parties.
Page 5 of 18 Assignment
 except for investment in quoted subsidiary
company, makes up 15.14% of total assets. Due Our procedures included, but were not limited to:
to materiality of quoted investments in the
context of the financial statements as a whole • We evaluated the independent professional
and the requirements of applicable accounting value’s competence, capabilities and objectivity.
and reporting standards relating to classification,
measurement and disclosures of investments in • We assessed the valuation methodology used by
related parties, they are considered to be the the independent professional valuer to estimate
area which had the greatest effect on our overall the fair value of the investments.
audit strategy and allocation of resources in
planning and completing our audit. • We checked, on a sample basis, the accuracy
and reasonableness of the input data provided
Un-quoted investments:
by management to the independent professional
values, to supporting evidence, such as
Investments in unquoted equity securities except for
approved budgets and considering the
investments in unquoted subsidiary companies are
reasonableness of these budgets by comparing
accounted for as financial assets at fair value
the budgets to the historical results and market
through other comprehensive income and are subject
data.
to fair valuation at each reporting date. Investments
in unquoted subsidiary companies are stated at cost
• We assessed the reasonableness of cash flows
less impairment loss, if any. The investments as at
projection, challenging and performing audit
30 June 2023 are valued by an independent
procedures on management’s assumptions such
professional values. With reference to the valuation,
as the future business growth driven by future
management estimated the fair value of the
expansion plan, future products selling prices
investments at Rupees 8,321.102 million at year end.
and operating costs, discount rate by comparing
the assumptions to historical results and
Investee companies are operating in Insurance, published market and industry data and
Packaging, Dairy, Hotel and Shopping Mall, comparing the current year’s results with the
Automobile and Energy sectors and therefore, fair prior year fore cast and other relevant
values are highly dependent on their expansion plans information. Our internal valuation expert has
and significant management judgments. been engaged to assist the review on valuation
Accordingly, the valuation of the investments was methodology and discount rate. In addition, we
considered as one of the key audit matters. had discussed with the management of the
investee companies to understand the business
The fair values were determined based on the and assessed if there was any inconsistency in
present value technique. The valuations involved the assumptions used in the cash flows
significant judgments and estimates from projection.
management, including future business growth
driven by future expansion plans, future products
• We agreed holding of all un-quoted investments
selling prices and operating costs of the investee,
from physical share certificates in hand.
discount rate, etc.
• We performed sensitivity analysis in
For further information, refer to the following:
consideration of the potential impact of
reasonably possible up side or down side
- Summary of significant accounting policies, changes in these key assumptions.
Investments note 2.10 to the financial
statements.
• We verified the accuracy of management
calculation used for the impairment testing, in
- Long term investments note 16 to the case of subsidiary companies carried at cost less
financial statements. impairment loss, if any.

3. Capital expenditures

The Company is investing significant amounts in

its operations and there are a number of areas
where management judgement impacts the Our procedures included, but were not limited to:
carrying value of property, plant and equipment
and its respective depreciation profile. These • We tested operating effectiveness of controls in
Page 6 of 18 Assignment
 include among other the decision to capitalize or place over the property, plant and equipment.
expense costs; and review of useful life of the • Cycle including the controls over whether costs
assets including the impact of changes in the incurred on activities is capital or operating in
Company’s strategy. nature.

We focused on this area since the amounts have a

significant impact on the financial position of the • We evaluated the appropriateness of
capitalization policies and depreciation rates.
Company and there is significant management
judgment required that has significant impact on
the reporting of the financial position for the • We performed tests of details on costs
Company. Therefore, considered as one of the capitalized.
key audit matters.
• We verified the accuracy of management’s
For further information, refer to the following: calculation used for the impairment testing.

- Summary of significant accounting

policies, property, plant, equipment and
depreciation note 2.6 to the financial
statements.

Property, plant and equipment note 14

-
to the financial statements.
4. Revenue recognition

The Company recognized net revenue of Rupees

141,756.469 million for the year ended 30 June Our procedures included, but were not limited to:
2023.
• We obtained an understanding of the process
We identified recognition of revenue as a key relating to recognition of revenue and testing
audit matter because revenue is one of the key the design, implementation and operating
performance indicator of the Company and gives effectiveness of key internal controls over
rise to an inherent risk that revenue could be recording of revenue.
subject to misstatement to meet expectations or
targets. • We compared a sample of revenue transactions
recorded during the year with sales orders, sales
For further information, refer to the following: invoices, delivery documents and other relevant
underlying documents.
- Summary of significant accounting policies,
Revenue recognition note
• We compared a sample of revenue transactions
2.24 to the financial statements.
recorded around the year-end with the sales
orders, sales invoices, delivery documents and
- Revenue note 27 to the financial statements.
other relevant underlying documentation to
assess if there lated revenue was recorded in the
appropriate accounting period.

• We assessed whether the accounting policies for

revenue recognition complies with the
requirements of IFRS 15 ‘Revenue from
Contracts with Customers’.

• We also considered the appropriateness of

disclosures in the financial statements.

Page 7 of 18 Assignment
Opinion Justification:
We, as independent auditors, have conducted a carefull examination of Nishat Mills Limited's
financial statements for the year ended 30 June 2023. Our opinion, based on this audit, is that the
financial statements present a true and fair view of the Company's financial position and
performance in accordance with the applicable accounting and reporting standards in Pakistan.
Key Audit Matters

1. Inventory Existence and Valuation:

Page 8 of 18 Assignment
We checked the inventory carefully. We did things like counting the stuff, double-checking how
much it costs, and assessing whether the inventory's selling price matches its market value or
what customers would actually pay for it. All of this makes sure the inventory is shown properly
in the company's records.
2. Investments in Securities:
We checked Nishat Mills investments in stocks that are publicly traded "Quoted" and
investments in private companies "Unquoted". We looked closely at how they were calculated,
and made sure the people doing the valuing were reliable (knew what they were doing).
3. Capital Expenditures:
Nishat Mills spends a lot on things like buildings and machinery. We checked if these expenses
were recorded properly and if the value of these assets makes sense. We also made sure any
reductions in value (depreciation) were accounted for correctly.
4. Revenue Checking:
We checked if they had good controls in place (examined how they record sales transactions,
from the initial sale to the final entry in the accounting records. including verifying the prices,
quantities, and timing of sales transactions.), compared their recoreded values with supporting
documents, and ensured compliance with revenue recognition policies under IFRS 15. By doing
this, we confirmed that the revenue numbers they reported were accurate and trustworthy.

Conclusion:
Auditor gave unqualified Opinion with reasonable assurance regarding the integrity and accuracy
of Nishat Mills Limited's financial statements. He mentioned he is confident because financial
statements of Nishat Mills Limited's are accurate and reliable, following all the rules and
standards.
Assignment no 3 Task

Responsibilities of Management and Board of Directors for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial
statements in accordance with the accounting and reporting standards as applicable in
Pakistan and the requirements of Companies Act, 2017 (XIX of 2017) and for such internal
control as management determines is necessary to enable the preparation of financial

Page 9 of 18 Assignment
 statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the

Company’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.

Board of directors are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISAs as
applicable in Pakistan will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise

professional judgment and maintain professional skepticism throughout the audit. We also:

• Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherdue
tofraudor error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design

audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to therelated disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease to continue as a
Page 10 of 18 Assignment
 going concern.

• Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.

We communicate with the board of directors regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.

We also provide the board of directors with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.

From the matters communicated with the board of directors, we determine those matters
that were of most significance in the audit of the financial statements of the current period
and are the refore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh
the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

Based on our audit, we further report that in our opinion:

a) proper books of account have been kept by the Company as required by the
Companies Act, 2017 (XIX of 2017);

b) the statement of financial position, the statement of profit or loss, the statement of
comprehensive income, the statement of changes in equity and the statement of cash
flows together with the notes thereon have been drawn up in conformity with the
Companies Act, 2017 (XIX of 2017) and are in agreement with the books of account
and returns;

c) investments made, expenditure incurred and guarantees extended during the year
were for the purpose of the Company’s business; and

d) zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of
1980), was deducted by the Company and deposited in the Central Zakat Fund
established under section 7 of that Ordinance.

The engagement partner on the audit resulting in this independent auditor’s report is Syed
Mustafa Ali.

Page 11 of 18 Assignment
Certainly! Here's the text converted into a format that you can easily copy and paste into a
word document:

Corporate Governance
Best Corporate Practices

Directors are committed to good corporate governance and comply with the requirements of the
Listed Companies (Code of Corporate Governance) Regulations, 2019.
The statement of compliance with the Listed Companies (Code of Corporate Governance)
Regulations, 2019 is enclosed.

Board Committees:
Audit Committee
The audit committee is performing its duties in line with its terms of reference as determined by
the Board of Directors. During the year under review, four Audit Committee Meetings were
held, attendance position was as under:

| No. of Sr. | Name of Director | Meetings Attended |

|------------|------------------|-------------------|
|1 | Mrs. Mehak Adil (Member/Chairperson) | 3 |
|2 | Syed Zahid Hussain (Member) | 4 |
|3 | Mr. Mahmood Akhtar (Member) | 3 |
|4 | Mr. Farid Noor Ali Fazal (Member) | 1 |

Mr. Mahmood Akhtar resigned as member Audit Committee.

Human Resource & Remuneration (HR&R) Committee

The Human Resource & Remuneration Committee is performing its duties in line with its terms
of reference as determined by the Board of Directors.
During the year under review, one Human Resource & Remuneration Committee Meeting was
held, attendance position was as under:

Page 12 of 18 Assignment
| No. of Sr. | Name of Director | Meetings Attended |
|------------|------------------|-------------------|
|1 | Mian Umer Mansha (Member) | 1 |
|2 | Mrs. Sara Aqeel (Member/Chairperson) | 1 |
|3 | Mr. Mahmood Akhtar (Member) | 1 |

Meetings of the Board of Directors

During the year under review, eight meetings of the Board of Directors of the Company were
held in Pakistan and the attendance position was as follows:

| No. of Sr. | Name of Director | Meetings Attended |

|------------|------------------|-------------------|
|1 | Mian Umer Mansha (Chief Executive Officer) | 8 |
|2 | Mian Hassan Mansha (Chairman) | 6 |
|3 | Syed Zahid Hussain | 8 |
|4 | Mr. Mahmood Akhtar | 8 |
|5 | Mr. Farid Noor Ali Fazal | 8 |
|6 | Mrs. Sara Aqeel | 8 |
|7 | Mrs. Mehak Adil | 6 |

Directors’ Statement
Following is the Directors’ statement on Corporate and Financial Reporting framework:

1. The financial statements, prepared by the management of the Company, present fairly its state
of affairs, the result of its operations, cash flows and changes in equity.
2. Proper books of account of the Company have been maintained.
3. Appropriate accounting policies have been consistently applied in preparation of the financial
statements and accounting estimates are based on reasonable and prudent judgment.
4. International Financial Reporting Standards, as applicable in Pakistan, have been followed in
preparation of financial statements.
5. The system of internal control is sound in design and has been effectively implemented and
monitored.

Page 13 of 18 Assignment
6. There are no significant doubts upon the Company’s ability to continue as a going concern.
7. There has been no material departure from the best practices of corporate governance.
8. Value of investments in respect of retirement benefits fund: Provident Fund: 30th June, 2023:
Rs. 4,612.500 million Un-audited, (2022: Rs. 4,572.669 million Audited).

Independent Auditor’s Review Report

To the members of Nishat Mills Limited
Review Report on the Statement of Compliance contained in Listed Companies (Code of
Corporate Governance) Regulations, 2019

We have reviewed the enclosed Statement of Compliance with the Listed Companies (Code of
Corporate Governance) Regulations, 2019 (the Regulations) prepared by the Board of Directors
of Nishat Mills Limited (the Company) for the year ended 30 June 2023 in accordance with the
requirements of regulation 36 of the Regulations.

The responsibility for compliance with the Regulations is that of the Board of Directors of the
Company. Our responsibility is to review whether the Statement of Compliance reflects the
status of the Company’s compliance with the provisions of the Regulations and report if it does
not and to highlight any non-compliance with the requirements of the Regulations. A review is
limited primarily to inquiries of the Company’s personnel and review of various documents
prepared by the Company to comply with the Regulations.

As a part of our audit of the financial statements we are required to obtain an understanding of
the accounting and internal control systems sufficient to plan the audit and develop an effective
audit approach. We are not required to consider whether the Board of Directors’ statement on
internal control covers all risks and controls or to form an opinion on the effectiveness of such
internal controls, the Company’s corporate governance procedures and risks.

The Regulations require the Company to place before the Audit Committee, and upon
recommendation of the Audit Committee, place before the Board of Directors for their review
and approval, its related party transactions. We are only required and have ensured compliance
of this requirement to the extent of the approval of the related party transactions by the Board of
Directors upon recommendation of the Audit Committee.

Page 14 of 18 Assignment
Based on our review, nothing has come to our attention which causes us to believe that the
Statement of Compliance does not appropriately reflect the Company's compliance, in all
material respects, with the requirements contained in the Regulations as applicable to the
Company for the year ended 30 June 2023.

RIAZAHMAD & COMPANY Chartered Accountants

Lahore
30 September 2023
UDIN: CR202310168dxt17zeXs

STATEMENT OF COMPLIANCE with Listed Companies (Code of Corporate

Governance) Regulations, 2019 (“the Regulations”)

Name of company : Nishat Mills Limited Year ended : June 30, 2023

The company has complied with the requirements of the Regulations in the following manner:

1. The total number of directors are Seven (7) as per the following: a. Male: 5 b. Female: 2

2. The Directors have confirmed that none of them is serving as a director on more than seven
listed companies, including this company;

3. The company has prepared a code of conduct and has ensured that appropriate steps have been
taken to disseminate it throughout the company along with its supporting policies and
procedures;

4. The Board has developed a vision/mission statement, overall corporate strategy and significant
policies of the company. The Board has ensured that complete record of particulars of the
significant policies along with their date of approval or updating is maintained by the company;

Page 15 of 18 Assignment
5. All the powers of the Board have been duly exercised and decisions on relevant matters have
been taken by the Board/shareholders as empowered by the relevant provisions of the Companies
Act, 2017 (the Act) and the Regulations;

5. The meetings of the Board were presided over by the Chairman and, in his absence, by
a director elected by the Board for this purpose. The Board has complied with the
requirements of Act and the Regulations with respect to frequency, recording and
circulating minutes of meeting of the Board;
6. The Board have a formal policy and transparent procedures for remuneration of
directors in accordance with the Act and these Regulations;
7. The Board has arranged Director’s Training Program for the following:
Names of Directors:

- Mr. Mahmood Akhtar

- Mr. Farid Noor Ali Fazal

- Mrs. Sara Aqeel

- Mrs. Mehak Adil

Following Directors meet the exemption criteria of minimum of 14 years of education and
15 years of experience on the Boards of listed companies, hence are exempt from Director’s
Training Program:

Names of Directors:

- Mian Umer Mansha

- Syed Zahid Hussain

Diffrentiation:

Management and Board of Directors: Management is responsible for preparing and presenting
financial statements in compliance with accounting standards and regulations. They ensure
internal controls are in place, assess the company's going concern status, and disclose relevant
information. The Board oversees the financial reporting process and ensures legal and regulatory
compliance.

Auditor’s Responsibilities for the Audit: Auditors aim to provide reasonable assurance about
the accuracy of financial statements. This involves assessing risks, designing audit procedures,

Page 16 of 18 Assignment
evaluating internal controls, and reviewing accounting policies and estimates. They also consider
the going concern basis of accounting and assess the overall presentation of financial statements.

Report on Other Legal and Regulatory Requirements: Auditors report on legal and
regulatory aspects, confirming proper record-keeping, conformity with laws and standards, and
appropriate zakat deductions.

 Corporate Governance Statement:

 This section outlines the company's commitment to good corporate governance practices,
including compliance with specific regulations and the establishment of board
committees.
 It provides information on the performance of board committees, attendance at meetings,
and directors' statements regarding corporate and financial reporting frameworks.

Certainly! If you want to replace the heading "Responsibilities of Management and Board
of Directors" with "Other Management Responsibilities," you can do so. Here's the
modified text with the updated heading:

Other Management Responsibilities:

- The management and board of directors are committed to adhering to the regulations and
standards outlined in the Listed Companies (Code of Corporate Governance) Regulations,
2019. This includes the establishment of board committees such as the Audit Committee
and the Human Resource & Remuneration Committee to oversee specific functions within
the company.

- Directors actively participate in committee meetings and board meetings, ensuring

compliance with regulations and the effective management of the company's affairs. They
provide a statement on the corporate and financial reporting framework, confirming the
accuracy and fairness of the financial statements, the maintenance of proper books of
account, adherence to accounting standards, implementation of internal controls, and the
absence of significant doubts regarding the company's ability to continue as a going
concern.

Purpose
Page 17 of 18 Assignment
Each section serves a distinct purpose in the financial reporting process:

 Management and Board Responsibilities: Ensure the accurate preparation and

presentation of financial statements, maintain internal controls, and provide oversight.
 Auditor’s Responsibilities: Independently verify the accuracy and fairness of the
financial statements, assess risks, and ensure compliance with auditing standards.
 Report on Other Legal and Regulatory Requirements: Confirm compliance with
specific legal and regulatory obligations, providing assurance to stakeholders beyond
financial accuracy.
 Corporate Governance Statement: Demonstrates the company's commitment to
transparency, accountability, and ethical conduct, providing stakeholders with confidence
in the organization's governance practices.

Link: https://nishatmillsltd.com/wp-content/uploads/2023/10/Nishat-Annual-Report-2023-4.6.pdf

Page 18 of 18 Assignment